Work

In danger of losing your job? Here's how to plan for a recession

Here's how to prepare for the worst if being retrenched is a real possibility at your current workplace
 

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It can be quite nerve-racking working in a time when there's so much talk of a looming recession. Losing a job doesn't only have financial implications, it also comes with a big emotional strain. To avoid extreme stress, here are six ways that you can prepare yourself.

Reassess Your Financial Situation

Since the biggest change in your life will be financially, you need to take a look at your finances and reexamine them. Get a clearer picture of the debts that you owe and how much you'll realistically need to survive each month. If you think you'll need a loan of some sort to tide you over, get one now as it's much easier to get a loan while you still have a job.

Reduce Your Debt

If you earn a high salary at the moment, try to clear as much of your debt as possible while you can. Whether it's your mortgage or credit card bills, pay off as much of it so that this debt is reduced later on. Also take advantage of credit card balance transfer deals and look out for cards with lower interest rates as this is an easy way to reduce credit card debt. When you're in a shaky financial situation, every little bit helps.

Set Up An Emergency Fund

It's never too late to start saving so get going right now if you haven't done so already. Whether you're living by yourself, with a partner or if you're supporting your parents, you should always have a separate fund to dig into, should you need it. Ideally, you should have at least three to six months' living expenses set aside. Not only does this give you a financial cushion should you lose your job, it also keeps you calmer psychologically as you know that you have some kind of support to tide things over initially at least. And reducing stress levels is also very important when it comes to dealing with a recession.

Get Rid Of Non-Essential Expenses

Whether it's cable TV, branded goods or eating out at the latest celebrity chef's restaurant, cut down on all the expenses you can live without. You don't have to live like a pauper but you should adopt a frugal lifestyle as much as possible. The key here is to live within your means so especially if you are putting a lot of these expenses on your credit card, it's time to stop now.

Diversify Your Income

If possible, look for other sources of income so you won't be reliant only on your job for money. Whether it's taking on a second – preferably part-time or freelance – job, putting some money in investments (make sure you get advice from a reliable source first, though) or even looking at selling stuff online, it's good preparation to look for alternative revenue streams now. Even volunteer work could be a good idea as it could lead to paid work in the future too.

Start Networking

Even if you think you might lose your job and you don't have high hopes of getting a new one because of the economic climate, it doesn't mean that you should stop looking for one. And, if your company has already been letting people go, it's time to pull up your socks and get working. Go to industry or networking events and make more connections that might help you in the near future. Update your resume, join online professional networks and register at job sites. If you have family or friends in the same industry – or an industry that you'd like to move into – tell them that you're looking to move so they can help to spread the word too.

Get more savvy financial advice and work-related tips and tricks at www.herworldplus.com/lifestyle

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